SQS Software Quality Systems AG Trading Update (1941C)
January 15 2015 - 2:00AM
UK Regulatory
TIDMSQS
RNS Number : 1941C
SQS Software Quality Systems AG
15 January 2015
15/01/2014
SQS Software Quality Systems AG
("SQS" or the "Company")
Trading Update
SQS Software Quality Systems AG (AIM: SQS), the world's largest
specialist supplier of software quality services, is pleased to
provide an update on trading for the year ended 31 December
2014.
SQS continues to experience solid growth. Results for the year
are expected to be in line with the Board's expectations with
turnover of circa EUR268m. A lower than expected tax rate of 22.5%
is expected to result in earnings per share ahead of the Board's
expectations. The lower tax rate is a consequence of a
geographically more favourable spread of profits.
The Company had a net cash position of EUR7m at 31 December
2014. This is an increase of EUR9.9m over the net debt position at
31 December 2013 and was achieved despite investment of EUR2.5m
during the year into extending the test-centre building in Pune,
India, and the purchase of an additional EUR1.8m worth of SQS India
BFSI (formerly Thinksoft) shares in December 2014.
Managed Services continues to grow in line with our strategy and
now represents 45% of total revenues, up from 41% for FY 2013.
Recent client wins and extensions for Managed Services during the
period include contract extensions from all large managed services
clients and a new client win with a European government agency
worth at least EUR5m per annum.
The US remains SQS' region with the fastest growth and revenues
have more than doubled during 2014. Most recent client wins in the
region include a tier one bank, a payment processing company, an
asset management institution and various other manufacturing and
technology companies.
Diederik Vos, CEO of SQS, commented: "2014 has been a year of
substantial progress for SQS with the successful integration of SQS
India BFSI greatly increasing our size, global delivery
capabilities and geographic reach. In addition, we have continued
to invest in our offshore and nearshore resources to facilitate the
ongoing success of our Managed Services business.
"We are pleased to report that we have continued to experience
solid growth across the Company as a whole and our greatly improved
net cash position at year end demonstrates strong cash conversion.
Progress in our US business during the year has been particularly
encouraging and will we therefore aim to increase our US market
presence going forward. We enter 2015 in an ever stronger position
within the markets in which we operate and, while we remain aware
of the unpredictable nature of macroeconomic conditions, we are
confident of further progress in the year ahead."
Enquiries:
SQS Software Quality Systems AG Phone: +49 (0) 2203 9154-0
Diederik Vos, Chief Executive Officer
Rene Gawron, Chief Financial Officer
Canaccord Genuity - Nomad and Joint Phone: +44 (0) 20 7523 8000
Broker
Simon Bridges / Peter Stewart / Cameron
Duncan
Westhouse Securities - Joint Broker Phone: +44 (0) 20 7601 6100
Robert Finlay / Antonio Bossi
Walbrook PR Limited Phone: +44 (0)20 7933 8780
Bob Huxford bob.huxford@walbrookpr.com
Sam Allen sam.allen@walbrookpr.com
About SQS Software Quality Systems
SQS is the world's leading specialist in software quality. This
position stems from over 30 years of successful consultancy
operations. SQS consultants provide solutions for all aspects of
quality throughout the whole software product lifecycle driven by a
standardised methodology, offshore automation processes and deep
domain knowledge in various industries. Headquartered in Cologne,
Germany, the company now employs approximately 3,900 staff. SQS has
offices in Germany, the UK, Australia, Egypt, Finland, France,
India, Ireland, Malaysia, the Netherlands, Norway, Austria,
Singapore, Sweden, Switzerland, South Africa, the UAE and the US.
In addition, SQS maintains a minority stake in a company in
Portugal. In 2013, SQS generated revenues of EUR225.8 million.
SQS is the first German company to have a primary listing on
AIM, a market operated by the London Stock Exchange. In addition,
SQS shares are also traded on the German Stock Exchange in
Frankfurt am Main.
With over 7,000 completed projects under its belt, SQS has a
strong client base, including half of the DAX 30, nearly a third of
the STOXX 50 and 20 per cent of the FTSE 100 companies. These
include, among others, Allianz, Beazley, BP, Centrica, Commerzbank,
Daimler, Deutsche Post, Generali, JP Morgan, Meteor, Reuters, UBS
and Volkswagen as well as other companies from the six key
industries on which SQS is focussed.
For more information, see www.sqs.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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